Metcash had acquired Franklin's supermarkets recently in a deal worth $215 million. Analysts are depicting a mixed response towards the purchase. Deutsche Bank's increased its cost target by 10 cents, and made it $4.80 for Metcash.

Alexi Baker-McLennan, an Analyst, said that the rise in competition between Wesfarmers-owned Coles and Woolworths could have an impact on the independent supermarkets.

Citi's Craig Woolford, estimated the total costs of Metcash to be $95m. This implies that it will get $120m from the marketing of the stores. This would make the transaction look convincing.

Thomas Kierath, of Morgan Stanley, disclosed that the acquirement was good but would not make him very happy.

He said that in the nine years of their ownership, Pick n Pay gained almost nothing from the supermarkets.

UBS liked the deal but said that it has neutral rating while Credit Suisse also appreciated the transaction but kept Metcash at underperform.

The Company is of the view that the management team of Franklin and also its staff has made a remarkable progress. However, the board is of the view that their business has not yet attained critical accumulation. The deal is expected to complete by 30 September